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Latin America's Racial Caste System: Salient Marketing International Business & Economics Research Journal – November 2008 Volume 7, Number 11 Latin America’s Racial Caste System: Salient Marketing Implications Rutilio Martinez, University of Northern Colorado, USA Vish Iyer, University of Northern Colorado, USA ABSTRACT Latin American societies are structured in a fuzzy racial caste system. Whites are at the top. Next are individuals of mixed European and Indian or mixed European and African ancestry, the Mestizos and the Mulattos, respectively. At the bottom are the Indians and the blacks. Integral to this system is an overt preference for European appearance and, among many whites, the firm conviction that the dark-skinned are racially inferior. This results in exclusive use of models of European appearance in publicity channels, higher prices of luxury goods, and the perception that Latin American products are of poor quality. Keywords: caste, European appearance, Mestizo, Mulatto, low income, dark-skinned I. INTRODUCTION n colonial times the Latin American societies were organized in a rigid, racially determined, caste system. The upper two castes included whites only. Below these two came the castes formed by individuals of mixed European and Indian ancestry, the Mestizos. Next in the pecking order were those of mixed IEuropean and Africa ancestry, the Mulattos. In the lowest castes were the Indians and the blacks. From the perspective of the whites, this hierarchy was more than a mere expression of colonial power. It was also an expression of the natural order regarding intelligence and beauty among the races. Nowadays, some 185 years after most of the Latin American nations obtained their independence, none of the Latin governments consider race to be an issue. All of these governments are firmly convinced that the racial caste system of colonial times has totally disappeared. This firmly held conviction is, however, not shared by academics and ordinary citizens who have noticed the distinct racial stratification of the Latin American societies. For these dissenters, the prevailing racial economic hierarchy and the, easily uncovered, attitudes that consider the dark-skinned unattractive and inferior clearly indicate that the racial caste system continues to operate. Today’s racial caste system is, of course, not nearly as rigid as it was in colonial times. But the fact that it has survived 185 years of social, economic and political advances implies that this system is deeply embedded in the Latin societies. Hence, it must have relevant social, economic and political effects. This paper, however, only discusses the effects that this racial system has on the marketing mix. Due to the fact that the racial reality in Latin America is contentious, the next section briefly discusses events and arguments that highlight the continued presence of the racial caste system in the Latin American countries. The remainder of this paper is organized as follows: Section 3 discusses the effects that the racial caste system has on publicity channels; Section 4 describes salient implications that this system has on the other elements of the marketing mix; namely price, product and place; Section 5 discusses racially motivated issues that dark- skinned, non Latin American executives may face when assigned to a Latin American nation; in Section 6 it is argued that the free market reforms and demographic changes that are taking place in most Latin nations are not undermining the relevance of the racial caste system, but they are likely to continue expanding the demand for all kinds of goods, including high income goods. Section 7 contains conclusions. 55 International Business & Economics Research Journal – November 2008 Volume 7, Number 11 II. THE RESILIENT RACIAL CASTE SYSTEM As mentioned in the introduction, the Latin American governments are convinced that race and racial appearance are not an issue in their societies. This conviction is also held by many Latin Americans. Several facts support this firmly held conviction. Among them: the glorification of the Indian past in countries with a significant Indian population like Guatemala, Mexico and Peru; the complete absence of virulent racial animosity; the election as president of a Mulatto, in Venezuela, and of an Indian, in Bolivia; the visible participation of dark-skinned individuals in the congresses of most Latin nations; the emergence of a large consumer class where most consumers are dark skinned, like in Mexico; and most importantly, the absence of any laws outlawing racial discrimination which implies that this type of discrimination is non-existent. These facts only show one side, the benign side, of the racial reality of Latin America. This reality also has an ugly side. Crucial components of this ugly side are the racist attitudes held by many whites and racially mixed individuals who pass as whites. These attitudes, although officially non-existent, have been present in the white segments of the Latin American societies for as long as these societies have existed. For most Latin nations, their first three or four decades of independence were afflicted by economic stagnation and political violence. This began to change in the middle of the nineteenth century. From that time until the early 1930s, most Latin nations experienced several decades of sustained economic growth and political stability [Bulmer-Thomas, 2003, pp. 9-17]. During these decades the oligarchies and the governments of the Latin nations did not implement policies that would have eroded the racial caste system inherited from colonial times. On the contrary, they openly adopted the racial theories that prevailed in the USA and Europe. These theories postulated that only the white man was capable of developing a country because Indians, blacks, and individuals of mixed race were naturally inferior. Accordingly, in Argentina, Indians were exterminated to make room for European immigrants; while in Venezuela, Brazil, Cuba, Guatemala, Mexico and other Latin nations, governments adopted policies that promoted the advancement of whites, but not that of the dark-skinned. Among these were: giving the best agricultural lands to whites, prohibiting the entrance of non-whites, but favoring the immigration of Europeans, and maintaining through violent means, the level of wages at the survival level [Bulmer-Thomas, 2003, pp.86-87; Graham, 1990, pp. 1-4; Hely,1990, pp.37-42; Herring, 1968, p. 329; Knight, 1990, pp.78-80; Stavenhagen, 1994, p. 334; and Skidmore, 1990, pp. 7-12] By the 1930s the governments of the Latin nations had discarded the racist ideologies that they had adopted in previous decades. Since then, the Latin societies have become predominantly urban, their literacy rates have surpassed the 90% level, they have formed large working classes, and practically all of them have elected democratic governments. Despite this economic, social and political progress, racist attitudes have continued to crop up. At the end of the 1960s, in a study of Mexican entrepreneurs done by the OECD, the main entrepreneurs of Mexico, all of whom were of exclusive European ancestry, openly stated their belief that Indians and Mestizos were inferior [Derossi, 1971, p. 149]. Later, in the 1990s, the Argentineans continued to insist that they were Europeans, hence, inherently superior to the Indians, blacks and racially mixed Latin Americans [The Economist, 1994]; while the conviction that the dark-skinned were indolent and unattractive was found to be very commonly held by members of the upper classes of several Latin nations [Nevaer, 1995, pp.101-105; Wagley, 1994, p.25; and Wright, 1990, pp. 99-129]. More recently, in 2005, Carlos Mosnivais, one of Mexico’s most respected intellectuals published an essay where he argued that, whether Mexicans accept it or not, most whites and individuals who pass as whites continue to despise the-dark skinned [Monsivais, 2005]. These attitudes, although dismissed as irrelevant by many Latin Americans, influence the Latin societies. Such influence is visible in the distribution of wealth. In the Latin nations the oligarchy is exclusively white. Whites also dominate the class that, in terms of wealth, is right below the oligarchy. Next in the economic pecking order come the individuals of mixed race, with those who have predominantly European appearance normally ahead of those who have predominantly African or Indian appearance. At the bottom are the blacks and the Indians [Nevaer, 1995, p. 102; Patrinos, H., & Hall, G., 2005, pp. 3-5; Skidmore, 1990, p. 28; Stavengahen, 1994, p.33; and Wagley, 56 International Business & Economics Research Journal – November 2008 Volume 7, Number 11 1994, pp.22-25]. This economic pecking order would be justifiable in Argentina, Costa Rica, Chile and Uruguay, where whites are the majority [CIA, 2008]. In the countries where Indians, Mestizos or Mulattos are the majority, the direct correlation between European appearance and economic position suggests that the white minority has the power to put in practice their attitudes regarding race and racial appearance. Hence, it can be concluded that the racial caste system, although not nearly as rigid as in colonial times, continues to operate throughout Latin America. III. IMPLICATIONS OF THE RACIAL CASTE STRUCTURE ON ADVERTISEMENT AND PROMOTION The most visible marketing effect of the racial caste system is on promotion and publicity. From Mexico to Argentina there is an unwritten rule that the models used in T.V. and internet commercials as well as in printed ads must be of European appearance. This rule applies to the publicity and advertisement of all kind goods and services, including unsophisticated goods and services such as: diapers, cubes of chicken broth, sodas, beer, fast food restaurants, hotels for the working classes, cigarettes and cheap clothing. If the goods or services are supposed to be quite sophisticated, elegant and expensive, the models for the T.V. commercials and printed ads for these goods and services tend to be of northern European appearance. That is, in the commercials and printed ads of the most sophisticated goods and services, models whose appearance is Scandinavian are preferred to models whose appearance is Mediterranean.
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